Correlation Between Enbridge Pref and Source Rock
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref 11 and Source Rock Royalties, you can compare the effects of market volatilities on Enbridge Pref and Source Rock and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Enbridge Pref with a short position of Source Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Source Rock.
Diversification Opportunities for Enbridge Pref and Source Rock
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enbridge and Source is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and Source Rock Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Source Rock Royalties and Enbridge Pref is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Enbridge Pref 11 are associated (or correlated) with Source Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Source Rock Royalties has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Source Rock go up and down completely randomly.
Pair Corralation between Enbridge Pref and Source Rock
Assuming the 90 days trading horizon Enbridge Pref 11 is expected to generate 0.3 times more return on investment than Source Rock. However, Enbridge Pref 11 is 3.36 times less risky than Source Rock. It trades about 0.54 of its potential returns per unit of risk. Source Rock Royalties is currently generating about 0.05 per unit of risk. If you would invest 1,828 in Enbridge Pref 11 on April 24, 2025 and sell it today you would earn a total of 270.00 from holding Enbridge Pref 11 or generate 14.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Enbridge Pref 11 vs. Source Rock Royalties
Performance |
Timeline |
Enbridge Pref 11 |
Source Rock Royalties |
Enbridge Pref and Source Rock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enbridge Pref and Source Rock
The main advantage of trading using opposite Enbridge Pref and Source Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Source Rock can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Source Rock will offset losses from the drop in Source Rock's long position.Enbridge Pref vs. Mako Mining Corp | Enbridge Pref vs. Perseus Mining | Enbridge Pref vs. Plantify Foods | Enbridge Pref vs. Western Copper and |
Source Rock vs. Orca Energy Group | Source Rock vs. Hemisphere Energy | Source Rock vs. Alvopetro Energy | Source Rock vs. McChip Resources |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |